Cryptocurrency influencer David Battaglia said via X that Strategy (MSTR)'s preferred stock STRC is similar to a type of insurance product. He stated, "Strategy selling STRC is exactly like an insurance company selling annuity insurance. Just as insurance companies receive premiums (float) from customers and invest their money to generate profit before an incident occurs, Strategy similarly raises funds and then purchases Bitcoin. Strategy stock is a product that can ride the BTC rally, absorbing market capital as aggressive investors pay a premium. He emphasized that "Strategy's model is a transparent product that can be checked in real-time, and criticizing it as a Ponzi scheme is simply the work of Strategy haters." Strategy's STRC is a product that pays monthly variable dividends targeting an annual 11.5% to holders. If it exceeds the face value (100 dollars), the dividend rate decreases, and if it falls below the face value, the dividend rate increases. Recently, it has been functioning as a source of funds for Strategy's BTC purchases. Meanwhile, Strategy founder Michael Saylor also reposted (retweeted) this influencer's X post.
